Saylor urges Bitcoin to reject BIP-110 in 110-point essay

Michael Saylor, co-founder and executive chairman of Strategy, published a 110-point essay on X urging the Bitcoin network to reject BIP-110. The post, titled “110 Reasons BIP 110 Is a Bad Idea,” drew more than 840,000 views within a day. Saylor described the proposal as “a Bitcoin Iatrogenic Proposal” and wrote, “Bitcoin does not need guardians of purity. It needs guardians of neutrality.”

Saylor argued that consensus rules should not judge the apparent purpose of valid, fee-paying transactions. He wrote that users, relays, indexers and miners can decline to use, relay, index or mine unwanted data, and that any consensus change should address a demonstrated denial-of-service or validation risk rather than the perceived intent of transactions.

BIP-110 is a proposed one-year soft fork that would impose seven restrictions on data-heavy transactions. The draft first appeared as BIP-444 in October 2025 after Bitcoin Core's v30 release increased default OP_RETURN data limits. A BIP-110 client is built on Bitcoin Knots, the alternative node implementation maintained by developer Luke Dashjr.

Under the proposal's deployment schedule, a mandatory signaling window opens near block 961,632, expected around Aug. 7 ET. Enforcing nodes would begin rejecting blocks that fail to signal during the mandatory window, with the rules taking effect for those nodes around Sept. 1. The proposal requires 55% of blocks to signal during the current difficulty period for early lock-in; public monitoring shows signaling blocks currently make up about 0.86% and have not exceeded about 1% in the tracked period.

If signaling stays near current levels, nodes enforcing BIP-110 would reject the large majority of blocks produced by non-signaling miners during the mandatory window, creating a minority chain for enforcing nodes. Jason Hughes, vice president of development and engineering at Ocean, estimated node support in the 7% to 15% range and wrote that the proposal is unlikely to reach the thresholds needed for broad adoption.

Supporters of BIP-110 argue that allowing arbitrary data storage as a common use of Bitcoin increases the burden on node operators and forces monetary transactions to compete with non-financial traffic. Backers describe the one-year restrictions as a temporary measure intended to preserve known monetary uses while the network refocuses on bitcoin as money. Investor Fred Krueger published a 110-point rebuttal listing reasons in favor of the proposal.

Saylor's public opposition to BIP-110 is uncommon for a major corporate bitcoin holder. Strategy's latest SEC filing shows the company holds 843,775 BTC at an average cost of $75,476 as of July 12. Saylor's tracker posts have displayed the firm's holdings, at one point showing $54.28 billion in value.

The mandatory signaling window beginning near block 961,632 will record node and miner signaling behavior on-chain during the scheduled period, and enforcing nodes will apply the proposal's rules once the window opens.